Rippling, an HR software start-up, has seen an increase in its valuation to $13.5 billion, as per a report by Reuters. This is a 20 percent increase from last year’s valuation. Its valuation was $11.25 billion in March 2023.
The valuation increased after the firm raised $200 million in a financing round. It was led by the technology-focused investment firm Coatue Management. The investor group also agreed to buy back up to $590 million worth of stock from employees and initial investors through a separate tender offer. This indicates a robust interest in owning shares in Rippling, as per the Reuters report.
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Peter Thiel's Founders Fund (a San Francisco-based venture capital firm), Greenoaks (an investment company in San Francisco), and other existing investors are some of the investors in the current round of funding. As per Rippling, Dragoneer (an investment firm in San Francisco) is in the round as a new investor.
Founders Fund committed as much as $200 million in the round. In a statement, Rippling said, “We’re pleased to announce Rippling has raised $200 million in new financing and signed agreements with investors to repurchase up to $590 million of equity from current employees, former employees, and early investors.”
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The company further added, “Rippling’s core thesis is that employee data is critical to a surprisingly large number of business systems, including those well outside of HR.” Rippling says that it gives companies and employees a single place to make changes, which then propagate everywhere automatically.
Rippling focuses on businesses that have less than 2,000 employees and are competing against major companies like Workday and Automatic Data Processing. The company’s Chief Executive, Parker Conrad, said in an interview that the company does not intend to go public immediately. However, to provide liquidity, it could arrange tender sales for employees.
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